Correlation Between Zhejiang Weixing and Arrow Home
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By analyzing existing cross correlation between Zhejiang Weixing New and Arrow Home Group, you can compare the effects of market volatilities on Zhejiang Weixing and Arrow Home and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zhejiang Weixing with a short position of Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Weixing and Arrow Home.
Diversification Opportunities for Zhejiang Weixing and Arrow Home
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Arrow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Weixing New and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group and Zhejiang Weixing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zhejiang Weixing New are associated (or correlated) with Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Zhejiang Weixing i.e., Zhejiang Weixing and Arrow Home go up and down completely randomly.
Pair Corralation between Zhejiang Weixing and Arrow Home
Assuming the 90 days trading horizon Zhejiang Weixing New is expected to under-perform the Arrow Home. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Weixing New is 1.13 times less risky than Arrow Home. The stock trades about -0.09 of its potential returns per unit of risk. The Arrow Home Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 826.00 in Arrow Home Group on September 18, 2024 and sell it today you would earn a total of 14.00 from holding Arrow Home Group or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Weixing New vs. Arrow Home Group
Performance |
| Timeline |
| Zhejiang Weixing New |
| Arrow Home Group |
Zhejiang Weixing and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Weixing and Arrow Home
The main advantage of trading using opposite Zhejiang Weixing and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Weixing position performs unexpectedly, Arrow Home can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arrow Home will offset losses from the drop in Arrow Home's long position.| Zhejiang Weixing vs. PetroChina Co Ltd | Zhejiang Weixing vs. China Mobile Limited | Zhejiang Weixing vs. CNOOC Limited | Zhejiang Weixing vs. Ping An Insurance |
| Arrow Home vs. Zhejiang Weixing New | Arrow Home vs. Yantai Moon Co | Arrow Home vs. Der International Home |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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